Chamber of Mines of the Philippines president Philip Romualdez who recently led a delegation to Canada to invite investors in the local mining industry, said Inco representatives expressed interest in looking at nickel mining prospects in the country.
"There is a lot of interest generated by the recent favorable developments in the local mining sector and Inco is one of the major players that want to see if they could come in," said Romualdez.
The roadshow according to Romualdez, also attracted Canadian junior mining companies such as the Dickenson Group and Canyon Reserves.
Industry sources said Inco officials are coming over to Manila to hold preliminary discussions with local interest groups in the next two weeks.
"Nothing has been firmed up yet, but hopefully, Inco will formalize its intention to invest in the mining industry," said Mines and Geosciences Bureau Director Horacio Morales, who was part of the delegation.
Inco, which controls 20 percent of global nickel sales is constantly expanding its nickel resource base, especially in markets such as Asia where demand for nickel is expanding.
One of the major markets in Asia for instance is China whose accelerated industrial growth is spurring a strong demand for nickel, not just for stainless steel, but also for value-added applications.
Data show that China’s nickel consumption went up by an average 20 percent annually since 2001, peaking at 40 percent in 2003. Demand is projected to rise by another 20 percent this year, making China the second biggest nickel consumer next to Japan.
Inco’s biggest market in China today is plating nickel, manufactured at the company’s operations in Thompson, Manitoba Plating nickel which helps provide the shiny finish on bathroom fixtures and automotive parts like hubcaps and fenders.
Inco also provides China with specialty nickel products such as powders and foam, used to manufacture rechargeable batteries.
Demand for these products will increase as China’s overall standard of living continues to improve, as will Chinese demand for stainless steel – the number one application for nickel – as the country continues to build new industrial capacity and infrastructure.
PT International Nickel Indonesia, Inco’s subsidiary in Indonesia posted earnings of $265.1 million in 2004, more than double its earnings of $104.2 million in 2003, with sales rising 56 percent to $792.1 million from $509 million in the previous year.
On the other hand, the Philippines is minerally-endowed with gold, copper, chromite and nickel deposits.